Transunion, Equifax cited for credit score deception

WASHINGTON – Jan. 4, 2017 – According an action taken by the Consumer Financial Protection Bureau (CFPB), Equifax, TransUnion and their subsidiaries may have deceived consumers about the usefulness and actual cost of credit scores they sold.

CFPB says the companies also lured consumers into costly recurring payments for credit-related products with false promises and ordered TransUnion and Equifax to truthfully represent the value of the credit scores they provide and the cost of obtaining those credit scores and other services.

Between them, TransUnion and Equifax must pay a total of more than $17.6 million in restitution to consumers in addition to $5.5 million in fines to the CFPB.

“TransUnion and Equifax deceived consumers about the usefulness of the credit scores they marketed, and lured consumers into expensive recurring payments with false promises,” says CFPB Director Richard Cordray. “Credit scores are central to a consumer’s financial life and people deserve honest and accurate information about them.”

Chicago-based TransUnion and Atlanta-based Equifax are two of the nation’s three largest credit reporting agencies. TransUnion and Equifax collect credit information, including a borrower’s payment history, debt load, maximum credit limits, names and addresses of current creditors, and other elements of their credit relationships. These generate credit reports and scores that are provided to businesses.

Through their subsidiaries, TransUnion Interactive and Equifax Consumer Services, the companies also market, sell or provide credit-related products directly to consumers, such as credit scores, credit reports and credit monitoring.

One of the problems cited by CFPB: No single credit score or credit score model is used by every lender, and credit scores vary by score provider and scoring model. The scores that TransUnion sells to consumers are based on a model from VantageScore Solutions, and VantageScores aren’t typically used for credit decisions. Scores Equifax sold to consumers were based on Equifax’s proprietary model, the Equifax Credit Score, which is an “educational” credit score also not typically used by lenders to make credit decisions.

TransUnion, since at least July 2011, and Equifax, between July 2011 and March 2014, violated the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act CFPB says by:

Deceiving consumers about the value of the credit scores they sold: In their advertising, TransUnion and Equifax falsely represented that the credit scores they marketed and provided to consumers were the same scores lenders typically use to make credit decisions.

Deceiving consumers into enrolling in subscription programs: In advertising, TransUnion and Equifax falsely claimed that their credit scores and credit-related products were free or, in the case of TransUnion, cost only “$1.” In reality, consumers who signed up received a free trial of seven or 30 days, after which they were automatically enrolled in a subscription program. Unless they cancelled during the trial period, consumers were charged a recurring fee – usually $16 or more per month. This billing structure, known as a “negative option,” was not clearly and conspicuously disclosed to consumers.

Equifax also violated the Fair Credit Reporting Act, which requires a credit reporting agency to provide a free credit report once every 12 months and to operate a central source – AnnualCreditReport.com – where consumers can get their report. Until January 2014, consumers getting their report through Equifax first had to view Equifax advertisements, a violation of the Fair Credit Reporting Act, CPFB says.

Enforcement action

Under the Dodd-Frank Act, CFPB may take action against institutions engaged in unfair, deceptive, or abusive acts or practices, or that otherwise violate federal consumer financial laws. Under the consent orders, TransUnion and Equifax must:

Pay more than $17.6 million in total restitution to harmed consumers: TransUnion more than $13.9 million and Equifax almost $3.8 million. The companies must send notification letters about the restitution to affected consumers.

Truthfully represent the usefulness of credit scores sold: TransUnion and Equifax must clearly inform consumers about the nature of the scores they are selling to consumers.

Obtain the express informed consent of consumers: Before enrolling a consumer in any credit-related product with a negative option feature, TransUnion and Equifax must obtain the consumer’s consent.

Provide an easy way to cancel products and services: TransUnion and Equifax must give consumers a simple, easy-to-understand way to cancel the purchase of any credit-related product, and stop billing and collecting payments for any recurring charge when a consumer cancels.

Pay $5.5 million in total penalties: TransUnion must pay $3 million to the Bureau’s civil penalty fund and Equifax must pay $2.5 million.

Biography: Sabrina Ozon

Sabrina is native of Buenos Aires Argentina, and she has been part of our team for the last four years, her background is in marketing and advertisement, she is our administrator assistant but also our marketing manager. Sabrina is our expert designer who works all of our marketing campaigns, business cards designs, training material assembly and social media materials.
Sabrina is a great asset for our company she brings support and Excellent service to our associates and her talent, creativity and dedication is a plus,
Always Available and very patient with our agents and customers, her primary goal is to provide the highest customer service and exceeds their expectations.
Sabrina manages every aspect of the transaction from illustrative listing presentations, signs, marketing flyers, open house and media advertising and all agents marketing needs.
Sabrina enjoys to spend time with her family; she loves the beach and drinks mate with friends and closed people.

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Yamilet is originally from Matanzas Cuba; She studied Philosophy at the University of Matanzas “Camilo Cienfuegos” She handles all administrative aspect of the office.
Yamilet is very knowledgeable and an excellent resource for our agents when it goes to training material or filing process, she handles the contracts and commission disbursements along with all other transaction Files.

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Yunier is our HR Specialist and Agent Relation Manager, he handle the membership segment of our company, he is responsible to screen potential agents interesting on join our team, he find the right talent and is always looking for individual with great attitude, sales experience and self-motivate who wants to take their real estate career to the next level.
Yunier has a great sense of humor and outgoing personally, he enjoys meet new people and he is full happiness.
Yunier arranges management interviews by coordinating schedules and build sources of recruiting to invite real estate professionals to become part of our team.
He loves to travel around the world, he loves spend time with friend and is a great host, one of his favorite hobbies is going to the gym and the foreign food taste.

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Biography: Diana Orozco

Diana was born and raised in Colombia, South America, came to the United Estates very young and graduated in Naples High school. A few years later earned an associate of arts in business administration and marketing from the Edison Community College, and a major in communication and advertisement from University of South Florida USF; Simultaneity, Owned and develop the Hispanic newspaper "Nuevos Ecos" along with “Estilo Florida” Hispanic Real Estate magazine. Late in 2004, she began her career in real estate; serving the median and low-income families, helping them to find a place to call home. Since then, she specialized in government loans, county down payment and housing assistance, as well as the Florida hardest hit Programs.
Diana is a self-motivated and passionate about helping others; actively involved as a volunteer in different non-profit organizations and well recognized by the media for her strong media/ marketing background. On 2007 after the housing market crashed in SW Florida, she specialized in the management of distress assets and the mitigation process for short sales transactions.
She established a strong relationship with lenders and financial institutions who far along in her career trusted her the management of their assets and made her one of the top ten distress/REO listing agents in Collier County. Today, she still handles distress properties, but now she has a team of twelve real estate agents who cover seventeen counties on the East and West coast of South Florida. She is an active member of several boards across South Florida and member of the East Coast housing development Group.
As a Broker/Owner of Xclusive Homes, She is proud to share her experience.
Twelve years of experience in the local real estate business.
1031 Exchange Specialist.
Florida certified Notary Public.
Attorneys Title Insurance Fund certified in Real Estate closing procedures

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Javier was born in Mexico City in 1944 has been a resident of Naples for the last 13 years, he holds a degree in Business Administration from National University of Mexico- 1968 and a Diploma in Business Direction Sponsored by Harvard University - 1995, he is fluent in English and Spanish.
He is the headmaster Mentor for our office and also a Broker Associate, NABOR Member since 2004, He has specialized in Residential Real Estate representing buyers and sellers in successful transactions and distress market for the last nine years.
He has been successful executing short sales and ensuring client satisfaction in the process.
Javier is uniquely qualified to meet the needs and wants of prospective buyers and sellers. He has been with Xclusive Homes for over three years. He appreciates that the brokerage offers a flat fee, 100% arrangement, and a profit share through the mentor program.
Javier is Married, and have three children and seven grandchildren. His hobbies include bowling, reading, traveling, family oriented activities and bicycling.

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Biography: Ernesto Velasquez

Ernesto is Originally from Colombia He has resided in the beautiful Southwest Florida town for over 13 years. He made his way from Boston Massachusetts to sunny Naples, Florida in 2004 when the area prospered and the real estate and construction market had a boom.
He finds in Naples a great town for him and his family. He enjoys walking Naples beautiful sandy beaches with his wife Julia and his little gemstone; his Granddaughter Juliana they are the biggest treasure of his life. What he loves most about the area is the abundance of golf courses, the white sand beaches, and the lifestyle.
Ernesto has over 20 years of experience as a Real Estate Broker from Boston Massachusetts, and he is one of the mentors in our office. He loves to teach and share his knowledge with our new associates through his experience on every transaction, and his passion is to be involved with the community and the civil organizations as well as he is an active member of the San Agnes Church.
Ernesto enjoys showing properties in all Naples Florida, especially waterfront properties, and golf communities. He has a wealth of information about Naples Real Estate, Gated Communities, Estate Homes, New Construction, and Naples Waterfront Properties.

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Biography: Gloria Velez

Gloria is an experience broker associate and rookie's mentor in our office; involved in Southwest Florida real estate industry for over ten (10) years. Her background comes from Colombia, South America where she holds a professional license of civil engineering; she also has a science's associate in accounting from Edison State College.
Gloria has a strong sales personality, and a heart to serve people, she loves to meet new people and help with "Solving the problem” weather be selling or buying she use all her knowledge and expertise.
Outside of work, Gloria likes to spend her time at the gym and bonding with her family. She has two sons of whom she is very proud; Matthew, 12, and David, 10, they are both actively soccer players, disciplined and good kids.
Gloria has served in multiple organizations and her tallies experience of years working as a real sales representative for developers in local communities. She is also a Public Notary and a 1031 Exchange specialist.

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Biography:Carlos Miranda

Carlos is originally from Colombia; He is bilingual speaking both English and Spanish. He resides in the beautiful Naples, Florida for the last 16 years.
Carlos has more than 18 years of experience in sales and customer service. Before his Real Estate career, Carlos spent many years in the Food & Beverage industry, while working in retail, he learned and developed skills in management, human resources, and public relations. He enjoys to teach with patience and dedication his coworkers and help them succeed on their first transactions; he is an excellent mentor and asset for our team.
He has achieved many awards from highest customer service, great attitude and dynamic behavior with his coworkers and clients.
He has specialized in residential and commercial real estate for over ten years. He has worked with clients around the US as well as people from all over the world including investors.
Carlos loves helping people make their dreams come true and achieve their goals; his hobbies includes bicycling, swimming, traveling to "La Alborada" his farm home closed to Medellin, Colombia, watch play soccer and cheer for his son "Carlitos" who proudly is a professional athletic champion.
Carlos is a very family oriented; he enjoys to spend time with his wife Liliana, his two daughters Paula, Isabel and his youngest son Carlos, along with his grandchildren.
You will find that He is honest, loyal, and committed to his clients. He is always available whether it be via phone, text, or email.